CHAPTER 11

INDUSTRIAL RELATIONS

Hazlin Hasan
Senior Lecturer
BA118
L1 29
011-10407440
 Industrial Relations

Overview of Industrial Relations

Workmen Within The Scope of Industrial Relations

1)General guidelines in Deciding a Workmen

2)Trade Disputes
3)Causes of Trade Disputes
4)Types of Action
5)Industrial Actions by Employees & Employers
 Overview of Industrial Relations
What is Industrial Relations?

• It is the relationship between an employer & his

employees pertaining to the employees’
employment or non-employment, terms and
conditions of work, grounds of termination of
employment, etc.

• It deals about each party’s rights & obligations

and helps to establish a harmonious industrial
relationship.

• It could be expressed (written in contract of

service) or implied (understood to be the norm
in the industry, therefore, understood by
everybody).
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 Overview of Industrial Relations
Industrial Relations focuses on:
1) rules & laws which have impacts on the
workplace.
2) terms & conditions of employment.
3) the process by which the terms & conditions are
established & made.

It is a “tripartite systems – decision making

process is made up of three parties.

The parties/participants are:

1) The employer
2) The employees (or the union representing the
employees)
3) The government
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 Overview of Industrial Relations
Expectations of Employers Expectations of Employees

1) Productivity 1) Wages/salary
2) Profitability 2) Fringe benefits
3) Loyalty 3) Security of tenure of
4) Discipline employment
5) Avoidance of wastage 4) Job satisfaction/promotion
6) Proper care and usage of tools 5) Conducive work
& machines environment/safety
7) Safety 6) Medical attention
8) Obedience to lawful orders 7) Leave
9) Cooperation 8) Retirement benefits
10) Industrial harmony 9) Retrenchment benefits
10) Industrial harmony

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 Workmen Within the Scope of
Industrial Relations
A “workman” refers to any person,
including an apprentice, employed by
an employer under a contract of
employment to work for hire or reward,
and for the purpose of any proceedings
in relation to a trade dispute includes
any such person who has dismissed,
discharged or retrenched in connection
with or as a consequence of that
dispute, or whose dismissal, discharge or
retrenchment has led to that dispute.

-Section 2, Industrial Relations Act 1967

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 Workmen Within the Scope of
Industrial Relations
1) Any person from the top management to the ordinary workers in the
industry, provided he has a contract of employment to work for hire or
reward.

2) An apprentice and a family member employed in a family business,

provided he regularly receives a salary (remuneration) from that family
business.

3) An employee being dismissed, discharged or retrenched from a trade

dispute arises out of dismissal, discharge or retrenchment.

4) An employee resigns because his employer’s conduct or behavior toward

him was so unreasonable that he could not tolerate it & thereby claims
constructive dismissal

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 GENERAL GUIDELINES IN DECIDING A “WORKMAN”

1) There is a contract of employment.

2) The workman agrees to provide his

own personal services and skills.

3) The workman performs the work

personally for the employer.

4) The employer has the right to

control the manner in which the
work is done.

5) There is remuneration to be paid

by the employer.

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 THE RELATIONSHIP BETWEEN EMPLOYERS AND
EMPLOYEES AND DEAL WITH TRADE DISPUTES

Trade Disputes (or Industrial Disputes)

Refers to ‘any dispute between an employer and his

workers which is connected with the employment or
non-employment or the terms of employment or the
condition of work of any such worker’.

Causes of Trade Disputes

1) An employee who has grievance/complaints, and is

represented by his union and who has exhausted the
grievance procedure without getting a satisfactory result.

2) A difference of opinion between a union and an

employer as to the appropriate terms and conditions of
service for the workers.
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 THE RELATIONSHIP BETWEEN EMPLOYERS AND
EMPLOYEES AND DEAL WITH TRADE DISPUTES

Causes of Trade Disputes

(cont’)

3) A difference of opinion as to the

interpretation of a collective
agreement or Industrial Court
Award.

4) The non implementation of an

agreement or Industrial Court
Award.

5) Termination of service of an
employee/employees.

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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYEES
Picket

The Industrial Relations Act (S40) allows workers to attend at or near their
workplace.

Purpose:
1) to peacefully give info to the public and other workers.
2) to persuade other workers not to work if a strike has already been declared.
3) to embarrass the employer.

Picket must not intimidate anyone, must not obstruct the entrance or exit of
the organization & must be peaceful

Only workers directly involved in the dispute can participate in the picket.

Picketers do not require a police permit as picket is a legal activity, unless if the
picket went beyond the confines of law.
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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYEES
Picket – cont’d…

Ways of picket:
1) Prominent display of banners & placards
with derogatory comments about the
employer & management.
2) Requesting passers-by to show their
support by pressing their vehicle horns.
3) Giving information to the mass media that
will in turn publicize the disputes between
the workers and the unions.

Often held at lunch time and before or after

working hours.

If a strike has been declared, picket will be

held throughout the day.
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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYEES

Strike

Occurs when a group of workers refuse to

work until the employer accepts their
demands.

It involves a refusal to continue work or to

accept work, which is intended to result in any
limitation, restriction, reduction, cessation or
dilatoriness in performance of their duties
connected with their employment.

There must be a trade dispute between the

striking workers and their employer. Strikers
must be a member of a registered union.

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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYEES

Strike – cont…..

A secret ballot must be taken before the strike commences and it is only valid
for 90 days.

In essential services, 21 days’ notice of strike must be given to the employer.

Strikes are not permitted:

1) Over a collective agreement which has been deposited with & accepted by
the Industrial Court.
2) Over management prerogatives.
3) During & immediately after the proceedings of a Board of Inquiry appointed
by the Minister.
4) After a trade dispute has been referred to the Industrial Court for
arbitration.
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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYEES

Strike – cont…..

Strikes are not permitted:

5) Over a recognition dispute which

is being resolved by the Minister.

6) Over a union claim for

recognition.

7) In the public sector, if the YDP

Agong refuses permission for the
dispute to be referred to the
Industrial Court.

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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYERS

Lock-out

Under Section 2, Industrial Act 1967) lock down means:

1) The closing of a place of employment

2) The suspension of work
3) The refusal by an employer to continue to employ any number of workmen
employed by him

The employer refuses to allow the workers to work until dispute

between them is settled.

Often, when the workers go on strike, the employer retaliates by closing the
factory or refusing permission for the strikers to come into the workplace.

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 TYPES OF ACTION
– INDUSTRIAL ACTIONS BY EMPLOYERS

Lock-out

Alternatively, the employer may keep

the firm operating, either by placing
managerial or non-union employees
in the strikers’ job or by hiring
replacement workers in a way to fight
the strike.

Lock-out is a very effective way of

ending a strike because workers
realize their action is not having any
negative economic consequences on
the employer.

Therefore they may decide to go back

to work.

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 END OF CHAPTER 11

GET READY FOR YOUR

QUIZ 3

6/30/2022 Hazelslides/OBM340/ODLOct 18
2021 - Jan 2022